Victorias City Mayor Javier Miguel Benitez said on Monday, Dec. 9, that the recent Department of Finance (DOF) reclassification of local government units was based on submitted Statement of Receipts and Expenditures (SRE) for the years 2020 to 2022.
It’s important to note that this period only includes six months of his administration, Benitez said in a statement.
Benitez was reacting to a report that the DOF had raised the income classification of three cities and five towns in Negros Occidental to first class, while Victorias City was not included.
Raised to first class cities were Bago, Cadiz and San Carlos.
Victorias income classification remains at fourth.
Benitez pointed out that Victorias City, given its size in terms of area and population, receives a relatively small National Tax Allotment (NTA) share, similar to La Carlota City.
The NTA share is a significant factor in income reclassification, as it has contributed to the increase in income classification for other cities, even without substantial growth in their locally sourced revenues, he said.
While the implementing circular does not explicitly state that the income reclassification period should cover 2020 to 2022, the rationale stems from Republic Act No. 11964 taking effect in 2023, Benitez said.
Section 4 of the law specifies that the basis for income classification is the last three fiscal years preceding the year of reclassification, which, in this case, covers 2020-2022, he said.
Benitez said the Victorias City Treasurer has made a projection based on data for 2021-2023.
”Using this period as a basis, Victorias City would qualify as a 3rd class city, with an average annual regular income exceeding P800 million but below P1 billion,” he said.
“This demonstrates the progress we’ve made under our administration and highlights the trajectory of growth we are striving to maintain. As we move forward, we remain focused on fostering economic development and building a resilient Victorias City for the benefit of all its people,” Benitez added.*